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No they don't.
Sales quotas, customer service standards, and parts department performance are all part of the qualifications for holdback payouts.
You aren't going to buy one for $9 over either.
Easily done on most models. Only the most desired models generally cannot be bought at or below invoice.
Sometimes but the example had the person buying at $9 over with no consideration as to what other money the dealer was making.
What the dealer is making is irrelevant if he was buying it for a posted price. The dealer has already agreed to sell so where his profit comes from is not a matter for discussion.
On average, not they do not. If you want to discuss what people with bad credit pay that is another topic but they aren't buying new cars. They also are not getting pre approved at low rates as was presented by the OP.
People with bad credit buy new cars all the time. Rebates and incentives are used to contribute toward down payment and offer a more attractive scenario to the lender.
No, that part is incomplete as they may be getting $5000 back from the manufacturer as far as you know. Your dismissal concerning being wrong about the dealer getting hold back regardless of how many cars is what I was speaking about.
People with bad credit buy new cars all the time. Rebates and incentives are used to contribute toward down payment and offer a more attractive scenario to the lender.
No they don't. The lender is perfectly aware of incentives and how they affect resale if they have to repossess. I only wish when I sold cars that it was that easy to get people with bad credit financed. Rebates are taxable so they have to be listed on the form anyway as a rebate.
No, that part is incomplete as they may be getting $5000 back from the manufacturer as far as you know. Your dismissal concerning being wrong about the dealer getting hold back regardless of how many cars is what I was speaking about.
There's no $5000 or any other rebate available on the BMW 320i, other than their usual college grad rebate.
Where do you get this stuff? Plenty of dealers accept personal checks for cars. It's easy to verify funds.
If you walked in on a Thursday with a check for a car a dealer could certainly call your bank, with you in the room to provide authorization, and verify you have the funds in your account to pay it.
Problem is, you can drive away Thursday night with the car and withdraw that money from your bank on Friday. By the time the check makes it through the system the following week it would bounce. Very common scam....
In my opinion, a dealer would be stupid to take a personal check from anyone unless they really know them. Even Cashier's Checks are becoming a problem as forgery of these have become more common. At my business we only accept wire transfers and most reasonable customers have no problem with this.
No they don't. The lender is perfectly aware of incentives and how they affect resale if they have to repossess. I only wish when I sold cars that it was that easy to get people with bad credit financed. Rebates are taxable so they have to be listed on the form anyway as a rebate.
Wrong.
You can take the rebate as cash if you wish, in which case the automobile manufacturer will mail you a check. But most folks simply apply the rebate to their down payment and never see the cash. For example, if you applied $1,000 of your own cash plus a $500 rebate to your down payment, your down payment (in most states) would appear in the paperwork as $1,500. In fact, that's the best option if you plan on financing - and particularly if you don't have much money to put down.
What denial? Holdbacks are indeed paid out based on sales, dealer performance, and other criteria that must first be met.
Do you really believe that holdbacks are always paid out no matter what?
Yes, holdbacks are paid no matter what in many cases. In Ford's case, you have MSRP, Invoice and Invoice LESS Holdback. The dealer is billed for the car at the Invoice LESS Holdback price. Then there is incentives and rebates (many of which are hidden to consumers no matter what you hear) that really determine the real "cost" of the car to a dealer. You cannot come here an say there is no other rebate available on the BMW320i since you can't find it on the internet. Maybe there is and maybe there isn't - only BMW and the dealer know this. There are all kinds of things out there that customers can't find - no matter how hard they try.
So these scam sites like Truecar who claim to give you this big savings are full of crap. Truecar charges dealers near $500 to sell a car through them so guess who pays that - YOU DO. The dealer adds it to the price when doing a Truecar bid. Not to mention they falsely proclaim the "Invoice" price to be something that it's not in many cases.
Lastly, 2.5% markup on interest rates is not an accurate average. Nationally, the average markup is about 1% on new cars. I can't really say what it would be on used but I would guess slightly higher - maybe 1.25%.
The car I wanted was at another dealership, but still Toyota. I went there, this time determined to not even give an opening to use their financing. Again same charade. This guy out right lied and said the dealership didn't use this lender. When I pulled out the phone again and called he then admitted that yes, they do use the lender, but then he kept saying I had to fill out their credit application. I asked why, as my lender said the opposite. Then he called his Finance guy down who said that "even though you have this lender's money, WE still need to pull your credit so that we can know 'who you are'. I said, well I can show you my drivers license, wouldn't that suffice? he said no, and returned my loan check. I left the dealership. So they were willing to let money walk out the door because it wasn't financed through them!!! Mindboggling to me. I mean I get that they make EXTRA money if you use their financing, but to lose sales completely? I was READY TO BUY right then and there. I didn't haggle over the price of the car. Was ready to go, and they let me walk!
Turns out it was a blessing in disguise as I needed to be home for other matters, but I would like to get myself a car, but dreading this. I really don't want to use dealer financing AGAIN, but is this non negotiable?
On your car, one thing I haven't seen mentioned is the fact the dealer you are dealing with needs to get the car you want from someone else. Given that, they might be asking to check your credit to ensure you are trustworthy before they buy the car from the other dealer. (Some dealers think people with good credit are more legit/trustworthy.) Once they buy that car for you they are stuck with it even if your deal with them falls through. There is a risk there for them....
Now at my place I would ask for a non-refundable deposit if I was getting a vehicle from another dealer that I was worried about reselling if my primary deal fell through. Even people with good credit can flake out on you in a moment's notice.
After buying my cars for 57 years the one thing I learned about finance is my credit union car loan rates are cheaper than any bank by at least one point. Ex: 4.99% vs. 6.3%. It did not please the banker or the dealer to learn I rolled the bank loan over to my credit union the next day.
Yes, holdbacks are paid no matter what in many cases. In Ford's case, you have MSRP, Invoice and Invoice LESS Holdback. The dealer is billed for the car at the Invoice LESS Holdback price. Then there is incentives and rebates (many of which are hidden to consumers no matter what you hear) that really determine the real "cost" of the car to a dealer. You cannot come here an say there is no other rebate available on the BMW320i since you can't find it on the internet. Maybe there is and maybe there isn't - only BMW and the dealer know this. There are all kinds of things out there that customers can't find - no matter how hard they try.
So these scam sites like Truecar who claim to give you this big savings are full of crap. Truecar charges dealers near $500 to sell a car through them so guess who pays that - YOU DO. The dealer adds it to the price when doing a Truecar bid. Not to mention they falsely proclaim the "Invoice" price to be something that it's not in many cases.
Lastly, 2.5% markup on interest rates is not an accurate average. Nationally, the average markup is about 1% on new cars. I can't really say what it would be on used but I would guess slightly higher - maybe 1.25%.
Obviously, you have no idea how a holdback works if you think it's "paid no matter what".....
Here's an example when it's not paid....
All or part of the financing cost will be recovered through the amount held back by the manufacturer if the car is sold in less than 90 days. The longer the vehicle is on the lot, the more of the holdback profit gets eaten into.
Rebates are some of the best selling tools which is why manufacturers publicize them prominently in TV, radio, print ads. But BMW keeps it a secret so no one would know what great deals can be had on their cars? LOL
I've bought my last 3 cars through Truecar. All I had to do was bring the printout and each dealer honored them. 0 time spent haggling plus the prices were better than anywhere including haggling. How many have you bought through them? I'm guessing 0. Cause your accusations simply sound like hearsay and innuendos without merit.
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